Financial Data

Cash & Cash Equivalents ($)

Marketable Securities ($)

Accounts Receivable ($)

Current Liabilities ($)

Analysis Results

Enter your financial data to calculate your quick ratio

Understanding the Quick Ratio

The Quick Ratio (also known as the Acid-Test Ratio) is a critical financial metric that measures a company's ability to pay its current liabilities without relying on the sale of inventory. It's a stringent test of liquidity that financial analysts, investors, and creditors use to evaluate short-term financial health.

Why Quick Ratio Matters

Liquidity Assessment: Measures immediate access to cash to meet obligations
Financial Health: Indicates stability during economic downturns
Investor Confidence: Higher ratios attract potential investors
Creditworthiness: Lenders use it to evaluate loan eligibility

< 1.0

Risk Zone

Insufficient liquid assets to cover immediate obligations

1.0 - 1.5

Adequate

Can meet obligations but limited financial flexibility

> 1.5

Healthy

Strong liquidity position with financial flexibility

Formula

Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities

Our free Quick Ratio Calculator provides instant analysis without requiring sign-up or payment. Simply enter your financial data and get immediate insights into your company's liquidity position. Save time on manual calculations and focus on strategic financial decisions.

Frequently Asked Questions